Friday, July 29, 2011

The Shekel overvalued

According to the Big Mac Index (The Economist) the Israeli shekel is 43% overvalued. Yet exports are booming.

There are many stocks that are traded in the Nasdaq as well in TASE. In that case, what is the meaning of the shekel's overvaluation? Are they cheap or expensive? Is it expensive in Israel and cheap in the US?

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